ABQ Times

The race is on for to grab a piece of the pie that is expected to be made available for small businesses in a new stimulus bill headed for President Donald Trump’s desk. 

But there is a fear for many it could be too late given the number of unprocessed applications for loans in the first rounds of the Paycheck Protection Program. The Albuquerque Journal reported the program is receiving an injection of $310 billion in a bill holding approximately $480 billion. Funding will also go toward hospitals and be used to expand COVID-19 testing. The $310 billion is expected to just as fast as the initial $349 billion for small businesses. An amount of $60 billion has been set aside specifically for smaller lenders at the regional level, a new aspect to the program. Businesses in New Mexico are urged to apply immediately. 

“It's going to be a race and it’s going to be a fast one this time,” John Garcia, director of the U.S. Small Business Administration’s New Mexico office said to the Journal.

Garcia said banks will give the unprocessed applications first priority once funding is approved leading to a fear there will not be funding left over for new applications.

“Those pending applications should eat up the funds first,” Wryan Capps, a partner with Axiom CPA’s in Albuquerque told the Journal. 

During the initial loan period, there were issues regarding both communication with banks and the loan website. Garcia told the Journal work has taken place to correct the issues and streamline the documentation process. The site, which crashed a number of times, has been upgraded to handle heavier traffic. 

Many businesses were adversely affected by the coronavirus pandemic and resulting damage to the economy as stay-at-home orders throughout the nation were enacted to stem the tide of the virus. The small business loans have already proven to be a popular lifeline with those struggling to keep their livelihood intact. 

During the first round of loans, 8,277 applications were processed for an amount of $1.5 billion between April 3 through April 16, when funding was no longer available. Businesses are being forewarned to get ahead of the curve and be ready from the first minute to put in an application for their businesses or run the risk of being left out in the dark.

“There is a high likelihood that they’ll get left behind, if they’re not ready when the opportunity comes,” Russell Wyrick, state director of New Mexico’s Small Business Development Center network said.